The new variety of apple tree ‘Howell TC3’ was created in the course of a planned breeding program carried out in Prosser, Wash. ‘Howell TC3’ originated as a result of an open pollination cross in 2001 of ‘Airlie Red Flesh’ (seed parent, not patented) with the likely pollen parent being ‘Honeycrisp’ (U.S. Plant Pat. No. 7,197, expired). ‘Howell TC3’ was selected in 2010 as a single plant from among a population of seedlings derived from the parents, and was selected for its quality of fruit and the red color of the fruit flesh. It is distinguished from its parents by its yellow skin and red flesh color and by its flavor. Asexual propagation by budding was first carried out in Prosser, Wash. The variety has since been observed over a number of asexually propagated generations, and has been found to remain true to type.